Calculte the APR andrEARassuming the loan (a) has not compensating balance requirement and (b) has a 20 percent compensating balance requirement and CAT currently hold no funds at the lending bank.
1.Parlow Packaging currently has $ 35,750 in cash, $ 47,000 in accounts receivable, $ 66,000 in inventories, $ 13,000 in accrued liabilities, $ 72,000 in accounts payable on its balance sheet. The firm’s production manager has determined that the cost of good sold accounts for 80 percent of sales revenue it produces. Furthermore, the firm … Read more